DAT ® SPECIAL REPORT
Freight Solutions
Carrier Benchmark Survey
TransCore 2011
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Executive Summary
In June 2011, TransCore surveyed more than 600 for-hire trucking companies
from across the United States to assess year-over-year changes in their operations.
Respondents include for-hire carriers, owner-operators, and broker-carriers. It is
our second annual survey.
Key findings:
2011 vs. 2010
Revenue per mile rose 10%, from
$1.85 per mile (including fuel) to
$2.03
ƒƒ For-hire carrier revenue increased 10% to $2.03 per mile or $17,808
a month per truck compared to 2010. The improvement was due
primarily to rate increases.
For-hire carriers’ monthly revenues
per truck increased by an average of
ƒƒ Compared to last year’s survey, carriers sourced 11% less freight from
contracts and repeat business while securing a 20% larger portion of
loads on the spot market.
A 1% improvement in empty miles
by for-hire carriers, from 9.7% to
ƒƒ On average, carriers found 42% of their freight volume using load boards.
ƒƒ Carriers earned more when they used load boards for approximately
half (31% to 60%) of their freight. By balancing brokers and shippers
in relatively equal proportions, they averaged $1,378 (7.7%) more
revenue per truck each month than other for-hire carriers surveyed.
Spot Market Rates, June 2010-2011
Spot market rates rose steadily in the first half of 2011, particularly in the refrigerated (“reefer”)
and flatbed segments due to a combination of unusually high seasonal demand and constrained
capacity. For-hire carriers benefited most when they hauled freight from both brokers and shippers
in relatively equal proportions.
$1,607
9.6%
Average length of haul declined 2.6%
from 903 miles one way in 2010 to
880 miles
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Carrier Revenues Rise 10% in 2011
Average revenue tops $2 per mile on higher rates, better utilization
Carriers reported an 18-cent (10%) increase in revenues per loaded mile in the
first half of 2011, compared to 2010. Their average rate per mile of $2.03 was 14
cents (7.3%) higher than the national average contract rate for dry vans ($1.89,
including fuel surcharge, during that period.
Key findings:
ƒƒ Average length of haul declined 2.6% from 903 miles one way in
2010 to 880 miles in 2011.
ƒƒ Empty miles improved 1% from 9.7% to 9.6%.
ƒƒ Spot market rates rose steadily in the first half of 2011, particularly
in the refrigerated (“reefer”) and flatbed segments due to a combination
of unusually high seasonal demand and constrained capacity. For-hire
carriers benefited most when they hauled freight from both brokers and
shippers in relatively equal proportions.
Load boards and the spot market continue to evolve as a source of high-value
freight for for-hire carriers. Repeat business and contracts together accounted
for 54% of their total freight volume, while the spot market, including load
boards, accounted for 42%.
Compared to last year’s survey, carriers derived 11% less freight from contracts and
repeat business while securing a 20% larger portion of loads on the spot market.
(These statistics include all survey respondents, who identified themselves as
for-hire carriers, owner-operators and carrier-brokers.)
Rate per loaded mile jumps 10% in 2011
Carriers reported an $0.18 (10%) increase
in revenues per loaded mile in the first
half of 2011, compared to 2010. Their
average rate per mile of $2.03 was $0.14
(7.3%) higher than the national average contract rate for dry vans of $1.89,
including fuel surcharge, during that
period. This difference may be due to the
presence of flatbed and reefer carriers
among the survey respondents, plus
any additional fees that may have been
incorporated into the carriers’ revenue
calculations.
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How Carriers Balance Spot, Contract Freight
The shift in focus toward the spot market led to additional analysis of how
much for-hire carriers rely on load boards and what benefits they’re seeing.
For-hire carriers were divided into three groups for this analysis, based on the
percentage of freight they found on load boards, compared to other sources.
Moderate load board use yielded highest revenue per truck.
ƒƒ Carriers who found 31% to 60% of their freight on load boards made
$1,378 (7.7%) more per truck monthly than the average for-hire carrier.
ƒƒ This group maximized return on assets by loading their trucks with a
combination of contract hauls and brokered freight. Carriers averaged
726 (8.3%) more loaded miles per truck per month and had an average
one-way length of haul 20 miles (2.3%) longer than their peers.
Monthly Revenue Per Truck
Occasional load board use yielded highest rates ($2.11) per mile.
ƒƒ Carriers who found less than 30% of their freight on load boards had the
lowest rate of asset utilization, both in terms of fewer overall miles driven
and a higher percentage of empty miles: 10.5% compared to the 9.6%
overall average.
ƒƒ This group also had the shortest average length of haul at 739 miles
one-way, which together with their high percentage of contract hauls
explains their higher-than-average rates.
Revenues Per Loaded Mile
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Frequent load board use led to best asset utilization.
ƒƒ Carriers who found 61% or more of their freight on load boards reported
only 8% empty miles in 2011 to-date.
ƒƒ This group also reported the lowest rates per mile ($1.88) and the
greatest length of haul (1,107 miles one-way) of the three groups.
Empty Miles for Load Board Users (Smaller number is better)
How We Surveyed
TransCore invited more than 20,000 carriers to participate in our second annual
Carrier Benchmark Survey, to measure and assess year-over-year changes in
their operations. During the summer of 2011, we received responses from 604
companies, including for-hire carriers, owner-operators and broker-carriers.
This report is based on responses from the for-hire carriers, except where noted.
We used a third-party survey tool to ensure the respondents’ anonymity.
Sources of Freight
Repeat business and contracts together accounted for 54% of the freight hauled by the carriers who
participated in the 2011 survey, while 42% of their freight was found on the spot market, including load
boards. Compared to last year’s survey, carriers derived 11% less freight from contracts and repeat business, while securing a 20% larger portion of loads on the spot market. (These statistics include all survey
respondents who identified themselves as for-hire carriers, owner-operators and carrier-brokers.)
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Business Type
More than half the survey respondents
identified as for-hire carriers, and
another 32% were owner-operators.
The remainder were private fleets
(13%) and carrier-brokers (3%).
Fleet Size
Survey respondents represented small
fleets. Nearly two-thirds (66%) had
fewer than six power units and only
9% had more than 25. The number of
power units includes idled trucks.
About TransCore
TransCore operates North America’s largest load-matching service, using
technology to help freight brokers, third-party logistics providers (3PLs),
trucking companies, manufacturers, and distribution operations move and
manage freight more efficiently.
Our DAT® Network of load boards is the industry’s largest and most trusted
electronic environment for matching available loads and trucks. We facilitate
the matching of more than 60 million loads and trucks per year; of those, 42
million are either found on the DAT® Network first or nowhere else.
Related services include truckload rate indices for contract markets; automated
monitoring of motor carrier insurance, CSA records, and DOT authority;
tracking and in-cab communications; transportation management software;
and a variety of tax reporting, titling, and driver compliance services.
To learn more about TransCore,
Call 800.547.5417 or visit
TransCoreFreightSolutions.com
©2011 TransCore. All rights reserved. All trademarks are the property of their respective owners. 10052011
Freight Solutions